Originally Posted by
ewrbasedpilot
Where are you getting this information? Their fellow pilots are getting screwed. That money is for retirement purposes, NOT sham divorces.
Check with ERISA, TEFRA, DEFRA, and QDRO. Also FASB 35 and FASB 36. While you may not like the methods, or lengths your fellow colleage went to ensure their financial security... it's legal.
In the case of separation, leading to divorce, under QDRO, the alternate payee, ie spouse, is entitled to a minimum of 50 percent of the participant's present value of his/her accrued benefit.
The methods of determining such present value of accrued benefits differs for both Defined Benefit and Defined Contribution Plans.